renting : dead money ?, page-24

Seeing as the inflation word has been mentioned , don't forget to discount your return by the inflation amount .

And I'm pretty sure you can't claim`inflation on your tax .

So , deduct the tax from your %4 and then take the inflation rate from your principle and see where you end up .

Depending on your tax rate , you might be getting 2.5 or 3% return but your $600k is now worth $12k less thanks to inflation @ 2%.

Oh , and one other thing . If it's an investment property , it's not $600k , it's $60k of your money .

Makes a bit of a difference in terms of return on your investment .